The commercial real estate giant CoStar is increasingly interested in the residential market, and its latest purchase allows the company to access more real estate data for this purpose.
CoStar Group announced this week that it had reached an agreement to purchase Homes.com, a listing website for residential properties, as part of a $156 million cash transaction.
Homes.com gets 5 million visitors a month looking for close to 1.8 million residential properties. Homes.com also supports more than 500,000 residential agents and brokers through the homeownership process. CoStar plans to merge Homes.com with another of its recent purchases, Homesnap, which is a marketing platform for residential real estate professionals that the company acquired in December.
“The combination of Homes.com’s online portal and consumer traffic with Homesnap’s powerful mobile tools and highly effective agent marketing solutions has the potential to create a differentiated service that uniquely focuses on selling a house faster and at a better price, rather than just trying to take agent fees,” Andrew C. Florance, founder and CEO of CoStar Group, said in a news release regarding the agreement. “Our plan in bringing Homesnap and Homes.com together is to help agents market their listings in support of the ‘your listing, your lead’ philosophy—which stands in contrast to most players in the industry.”
CoStar hopes to make its purchase on Homes.com better than trying to buy RentPath for $588 million at the end of last year. The Federal Trade Commission intervened in that transaction and filed a federal lawsuit in December 2020 to block CoStar’s purchase of RentPath, arguing that the combined companies would then have too much control over the rental listing market in the U.S.
However, it is expected that the acquisition of Homes.com will largely take place during the first half of 2021. Homes.com will then join the other CoStar apartment and residence ad sites, which include Homesnap, Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartmentos.com